State Street (STT) AI Stock Analysis

• Market Cap: $35.51B
• Dividend Yield: 2.45%
• Average Volume (3M): 1.64M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.00
• Revenue Growth: 5.62%
• EPS Growth: 49.49%
• Country: US
• Employees: 52,711
• Sector: Financial
• Sector Strength: 70
• Industry: Asset Management
• EPS (TTM): 2.78
• Shares Outstanding: 279,312,440
• 10 Day Avg. Volume: 2,046,259
• 30 Day Avg. Volume: 1,635,411
• PEG Ratio: 0.23
• Price to Book (P/B): 1.15
• Price to Sales (P/S): 1.33
• P/FCF Ratio: -2.07
• Enterprise Value/Market Cap: 1.89
• Enterprise Value/Revenue: 2.95
• Enterprise Value/Gross Profit: 4.91
• Enterprise Value/Ebitda: 15.73
• 1Y Price Target: $132.38
• Price Target Upside: 4.11% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 13
• EPS Forecast (FY): 10.1
• Revenue Forecast (FY): $13.87B

• Rating: 75 Outperform
• Price Target: $140.00 ▲(10.11% Upside)

State Street's strong earnings growth, strategic partnerships, and robust technical indicators are the primary drivers of its stock score. While cash flow challenges and increased expenses present risks, the company's strategic initiatives and market positioning support a positive outlook.

Positive Factors

Strategic Partnerships

The partnership with Apex Fintech Solutions enhances State Street's offerings, strengthening its competitive position and supporting long-term growth.

Revenue Growth

Strong revenue growth indicates robust demand for State Street's services, supporting its market position and potential for sustained profitability.

Assets Under Management Growth

Growth in assets under management reflects successful client retention and acquisition, enhancing State Street's fee-based revenue potential.

Negative Factors

Increasing Expenses

Rising expenses could pressure profit margins if not offset by revenue growth, impacting long-term financial performance.

Debt Levels

Moderate leverage may limit financial flexibility, posing risks if economic conditions worsen or interest rates rise.

Cash Flow Challenges

Negative cash flows suggest potential liquidity issues, which could hinder investment in growth initiatives and shareholder returns.

State Street Business Overview & Revenue Model

Company Description

State Street Corporation (STT) is a leading financial services and bank holding company that specializes in investment servicing, investment management, and investment research and trading. Founded in 1792 and headquartered in Boston, Massachusetts, State Street primarily serves institutional investors, including asset managers, pension funds, and mutual funds. The company operates in two main segments: Investment Management, which provides investment advisory services and manages assets for clients, and Investment Services, which includes custody, fund administration, and accounting services.

How the Company Makes Money

State Street generates revenue through a diversified model that primarily includes fees from investment management services and investment servicing activities. In the Investment Management segment, the company earns management fees based on a percentage of assets under management (AUM), which fluctuates with market conditions and client inflows or outflows. In the Investment Services segment, State Street charges fees for custody services, fund administration, and other related services. Additionally, the company benefits from securities lending and foreign exchange services. Significant partnerships with asset managers and institutional clients, along with a strong presence in the global financial markets, contribute to its earnings. Overall, the company's revenue is significantly influenced by market performance, client activity, and the overall demand for investment services.

State Street Financial Statement Overview

Summary

State Street shows solid revenue growth and profitability with a stable balance sheet. However, cash flow challenges and increasing debt levels pose potential risks to financial flexibility.

Income Statement

State Street's income statement shows a consistent revenue growth trajectory with a TTM revenue growth rate of 1.93%. The company maintains healthy profit margins, with a gross profit margin of 59.48% and a net profit margin of 13.01% in the TTM. However, the margins have slightly decreased compared to previous years, indicating some pressure on profitability.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.25 in the TTM, showing a moderate level of leverage. The return on equity is 11.14%, indicating efficient use of equity to generate profits. However, the increasing debt levels over the years could pose a risk if not managed properly.

Cash Flow

Cash flow analysis reveals challenges, with negative operating and free cash flows in the TTM. The free cash flow to net income ratio is positive at 1.10, suggesting that the company is generating enough cash relative to its net income. However, the negative cash flow growth rate and operating cash flow coverage ratio indicate potential liquidity issues.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	22.71B	21.97B	18.37B	13.67B	12.03B	12.07B
Gross Profit	13.65B	12.84B	11.90B	12.11B	12.06B	11.61B
EBITDA	4.26B	4.00B	3.20B	4.48B	4.73B	4.41B
Net Income	2.98B	2.69B	1.94B	2.77B	2.69B	2.42B
Balance Sheet
Total Assets	371.07B	353.24B	297.26B	301.45B	314.62B	314.71B
Cash, Cash Equivalents and Short-Term Investments	74.20B	134.55B	136.24B	146.20B	183.45B	183.45B
Total Debt	34.51B	36.79B	24.37B	18.27B	15.18B	21.20B
Total Liabilities	343.43B	327.91B	273.46B	276.26B	287.26B	288.51B
Stockholders Equity	27.64B	25.33B	23.80B	25.19B	27.36B	26.20B
Cash Flow
Free Cash Flow	-6.14B	-14.14B	-126.00M	11.22B	-7.52B	2.97B
Operating Cash Flow	-5.57B	-13.21B	690.00M	11.95B	-6.71B	3.53B
Investing Cash Flow	-26.07B	-39.48B	12.74B	6.82B	-2.17B	-65.53B
Financing Cash Flow	43.46B	51.79B	-13.35B	-18.43B	9.05B	62.17B

State Street Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 127.15
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For STT, the sentiment is Positive. The current price of 127.15 is above the 20-day moving average (MA) of 120.94, above the 50-day MA of 118.03, and above the 200-day MA of 104.27, indicating a bullish trend. The MACD of 3.27 indicates Negative momentum. The RSI at 64.97 is Neutral, neither overbought nor oversold. The STOCH value of 71.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for STT.

State Street Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NTRS	78 Outperform	$26.15B	16.12	13.31%	2.24%	-4.52%	7.01%
STT	75 Outperform	$35.51B	13.46	11.14%	2.45%	5.62%	49.49%
BK	75 Outperform	$79.74B	16.50	12.21%	1.75%	4.22%	51.01%
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
AMP	64 Neutral	$45.21B	13.34	59.59%	1.29%	5.76%	39.77%
CG	59 Neutral	$20.82B	32.15	11.85%	2.42%	-24.62%	437.16%

State Street Corporate Events

State Street to Redeem $500M Senior Notes

On October 29, 2025, State Street Corporation announced its decision to redeem its $500 million 5.751% Fixed-to-Floating Rate Senior Notes due 2026 on November 4, 2025. The redemption will be executed at the principal amount plus accrued interest, and State Street plans to use cash on hand for this transaction. This move may impact the company’s financial operations by reducing its debt obligations.

State Street Issues $1 Billion Senior Notes

On October 23, 2025, State Street Corporation issued $1 billion in Fixed-to-Floating Rate Senior Notes due 2036. The issuance, conducted through a public offering, is expected to yield net proceeds of approximately $993.9 million, which will potentially impact the company’s financial operations and market positioning.

State Street Reports Strong Q3 2025 Financial Results

On October 17, 2025, State Street reported its third-quarter 2025 financial results, highlighting a strong performance with an EPS of $2.78. The company achieved a record $51.7 trillion in assets under custody/administration and $5.4 trillion in assets under management. The results were driven by a 9% year-over-year increase in total revenue and consistent financial performance, marked by seven consecutive quarters of positive operating leverage. State Street’s strategic focus on innovation and client capabilities was underscored by a new partnership with Apex Fintech Solutions and the launch of 39 new investment products. The company returned $637 million to shareholders through repurchases and dividends, and increased its quarterly dividend by 11% to $0.84 per share, positioning itself for sustained growth.

State Street Appoints Brian J. Porter as Director

On September 15, 2025, State Street Corporation announced the election of Brian J. Porter as an independent director, who will also serve on the Human Resources and Risk Committees. This appointment is part of State Street’s ongoing efforts to strengthen its governance and oversight, with Mr. Porter receiving compensation consistent with other non-employee directors, reflecting the company’s commitment to maintaining robust leadership and strategic direction.